Our clients constantly ask us to come to their homes and tell them which remodeling or updating projects they should consider before listing their homes with us.
Well, “that depends,” we say.
Whether you’re dying to update your kitchen, add a half-bath, or kick back on a brand-new deck, it pays off big-time to know just what kind of return on investment your dream renovation might deliver.
You’re in luck. Remodeling magazine has just released its annual Cost vs. Value report, which analyzes what you’ll pay for various upgrades – and how much you’ll recoup on that investment when you sell your home.
There wasn’t much change between the 2016 and the 2017 report. What did change is the value of pricier project rose, reflecting the fact the housing market is healthier than ever.
Still, the perennial chart toppers for ROI are the cheapest to pull off. For the past two years, the top finisher was installing loose-fill fiberglass insulation in the attic. Not exactly sexy, but boy, is it cost-effective!
The biggest take-away for home sellers is the fact that the attic insulation is the ONLY renovation that brings over 100% ROI and the remainder typically won’t pay them back in full.
What we do see is that many homeowners have deferred maintenance and haven’t updated their homes for years, if not decades. They have a tough choice to make: sell “as-is, (which is a misnomer since ALL real estate sold in the state of CA is sold as is, per the purchase contract) or do a few updates to bring the home to its market ready, competitive best.
I recommend a consultation with your Realtor to look at the comparabel home sales to determnine what your home will sell for and then move forward accordingly.
P.S. Note: I work with extraordinary contractors, flooring professionals and other seasoned service providers that will, on a case-by-case basis, get paid out of escrow.